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When the lake was created behind Grand Coulee Dam, Daisy, located on the east shore of Franklin D. Roosevelt Lake at the mouth of McGee Creek, was safely above the 1,310-foot elevation level of the shoreline. The site was claimed as a homestead in 1902 by Samuel L. and John H. Magee. While nearby silver-lead mines were active, Daisy had a store, a hotel, a church, and a post office. The place was named by the Magee brothers for the nearby Daisy Mine. McGee Creek flows through the community.